Energy monitoring software records and displays how much electricity a commercial site uses, while energy management software helps a business plan and control when and how a commercial site it operates uses electricity.
From the perspective of a financial director, monitoring software helps you find waste while management software can lower your costs, improve returns from solar or battery equipment and, in some cases, offer trading revenue opportunities.
In this article, learn more about what each type of software does, how they differ, and how to find out if the software currently managing your battery and any solar equipment is optimal.
What is energy monitoring software and what does it do?
Energy monitoring software collects readings from electricity meters and connected equipment. It shows how much electricity the site uses, when your usage is highest, which equipment consumes the most power, and where the business may be wasting energy and money.
An energy monitoring software may draw data from some or all of the following:
- Heating and cooling systems
- Solar panels
- Batteries
- EV chargers
- Building management systems
- Equipment sensors
- Energy bills
You can see the data it gathers in a number of ways, usually a mix of on-screen dashboards and customisable charts and reports. They may show you:
- How much electricity the site uses each hour
- When demand rises or falls
- Which areas or equipment use the most energy
- How much electricity the solar panels generate
- How much electricity the site buys from or sends to the grid
- How usage has changed over time
- Whether an energy-saving project delivered the expected result
How much detail you see depends on the meters and equipment the energy monitoring software takes readings from.
You can use the information it finds to investigate potential faults, like a faulty chiller drawing more power than usual or solar panels producing less than expected, and decide which issues need addressing first.
Some platforms send you alerts like an unexpected rise in overnight electricity use or can suggest possible changes, such as changing the times heating or cooling equipment runs. Features vary between energy monitoring software platforms, so check what the software can actually do before you buy it.
Example: A hotel’s main meter is showing high electricity use overnight. The EMS tracks that spike back to one part of the building. You can then check whether equipment is running when it should be off or whether something needs repairing.
Takeaway: Energy monitoring software shows you, but one does not cut costs on its own. You can only save money if you take action following a review of the information it provides to you.
What is energy management software and what does it do?
Energy management software plans when equipment on your site will run and when your batteries will charge and discharge. It bases those plans on a wide range of factors:
- How your site uses electricity
- The prices you pay to import electricity (buy it from your supplier)
- The prices you receive for exporting electricity (how much you get paid for electricity sent to the grid)
- How much electricity your solar panels are expected to generate
- How much energy the batteries currently hold
- Any site rules, such as keeping energy in reserve for backup or reducing demand at certain times
- How much electricity the site is expected to need over the next few hours
- The operating limits of the battery, inverter, and grid connection, such as maximum charge, discharge, import, and export levels
- The prices available from battery energy trading at different times
Essentially, think of energy management software as electricity monitoring software that also uses that information to manage your site’s electricity use.
Example (battery): You may pay less for grid electricity overnight and more during the afternoon. The software may decide to charge up your batteries overnight, then use that stored electricity later when prices are higher.
Example (battery + solar): The energy management software checks the weather forecast and if the solar panels are likely to produce plenty of electricity, the software can leave enough room in the battery to store it. It could then use that stored solar electricity later in the day, reducing the amount you need to buy from the grid.
A properly set-up energy management system takes account first of what your site needs to operate when deciding what actions to take. So, before using the battery to cut electricity costs or earn trading income, the software considers whether it needs to:
- Keep part of the battery charged in case of a power cut
- Save enough battery power to reduce an expected rise in site demand (peak shaving)
- Finish charging company vehicles by the times they are needed
- Keep heating and cooling within the temperatures the business has set for the site
Another factor is staying within the import and export limits agreed with the local electricity network operator. Exceeding the import limit can lead to extra capacity charges. Exceeding either limit may breach the site’s connection agreement or trip protective equipment. The business may then need to change its settings or pay to upgrade the connection.
Takeaway: The energy management system does this for you in the background so you or your staff don’t have to keep checking prices, forecasts and site demand or changing the battery settings by hand yourself.
Caveat 1: Not every product sold as energy management software can forecast, schedule and control equipment. Some only provide dashboards, reports or recommendations, so someone still has to review the information and change the settings.
Caveat 2: Not all energy management systems behave in this way. Some operate on fixed hours, meaning the battery follows the same charging and discharging times even when prices, demand or expected solar generation change. Later on, we’ll explain why these fixed schedules can miss savings and trading opportunities.
Energy monitoring software vs energy management software
Below, see what energy monitoring software and energy management system do side by side so you get a clear view of the difference between them:
| What the software does | Energy monitoring software | Energy management software |
|---|---|---|
| Shows how much electricity the site uses | ✓ | ✓ |
| Shows when electricity use rises or falls | ✓ | ✓ |
| Shows solar output and battery charge levels | ✓ | ✓ |
| Alerts you to unusual electricity use | ✓ | ✓ |
| Compares energy use across equipment or sites | ✓ | ✓ |
| Plans when batteries should charge or discharge | ✗ | ✓ |
| Plans when connected equipment should operate | ✗ | ✓ |
| Sends instructions to compatible equipment | ✗ | ✓* |
| Updates its plan when prices, demand, or solar forecasts change | ✗ | ✓* |
| Manages battery trading | ✗ | ✓* |
*These features depend on the product, the equipment installed and the connections between them. Battery trading also requires a provider that offers access to energy markets.
Choose energy monitoring software if you want to:
- See where electricity costs are rising
- Compare buildings, areas, or equipment
- Spot unusual use or check whether an energy-saving project worked
Choose energy management software if you want to:
- Change when your batteries charge or discharge
- Change when connected equipment uses electricity
- Move suitable electricity use to cheaper times
Please note that energy management software can decide how a battery or piece of equipment behaves if it’s connected to it.
How responsive energy management software can save you money
Earlier, we mentioned how some energy management systems charge and discharge the battery at the same set times each day. While fixed schedules may still save money, companies can leave money on the table because the schedule does not change when prices, site demand, or expected solar generation change.
This is how responsive energy management systems differ:
| What changes | How responsive software may react |
|---|---|
| Electricity prices rise or fall | Changes when the battery charges up and when it discharges to supply your site, so you buy less electricity at expensive times. |
| The solar forecast changes | Leaves more room in the battery when the forecasts suggest plenty of solar electricity generation, or charges the battery from the grid during a cheaper period when little solar electricity is expected. |
| Site demand rises unexpectedly | Uses available battery power to reduce the amount of electricity the site buys from the grid at that time. |
| The business needs more battery power later | Keeps enough electricity stored for backup, an expected site peak, or another planned use, like charging company vehicles by a set time. |
| A battery trading opportunity appears | Compares the value of possible trading income with the value of keeping the battery available for the site to use instead. |
| Conditions change on site (like an unexpected rise in demand) | Updates the charging and discharging times instead of following the original schedule for the rest of the day. |
Do you have the right energy management software for your site?
How you answer these five questions will tell you whether your current software is making the most of your battery and solar equipment:
- Does it use your actual tariff, site demand, and equipment data?
- Can it forecast demand and solar generation?
- Can it send schedules or instructions to connected equipment?
- Can it update those schedules when prices or site conditions change?
- If you have commercial battery storage in Great Britain, can your provider offer energy trading?
Two or more “no” or “not sure” answers may mean your on-site monitoring is probably good but you’re missing out on potential savings and trading income.
GridVolt’s Energy Manager software updates every 15 minutes, 96 times a day, to recalculate the schedule for your battery and connected equipment as conditions change, using your tariff, site data, forecasts, and operating limits. Energy Manager is available in Great Britain and Ireland.